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DAX

The most important German share index calculated by Deutsche Börse AG. It shows the development of the 40 biggest German stock corporations in terms of market capitalisation.

Principles for the calculation and composition of the DAX

The German benchmark index DAX® has been calculated by Deutsche Börse AG since 1 July 1988. It represents around 80% of the market capitalisation of listed stock corporations in Germany and approximately 90% of transactions in German shares.

DAX stocks are listed in one of two segments of the Regulated Market: the Prime Standard or the General Standard. The criterion for the weighting of shares in the DAX is the market capitalisation of free float.

The DAX is calculated and updated every second as a price and performance index on the basis of Xetra prices. Decisions on changes in the composition of the index are made by Deutsche Börse twice per year at ordinary adjustment dates in March and September.

How has the calculation of the DAX changed?

The rules for the composition of the DAX were comprehensively revised between December 2020 and September 2021. In addition to being expanded to 40 companies, qualitative criteria such as profitability, the submission of financial reports or the establishment of an audit committee within the supervisory board are now also taken into account.

The most significant changes are as follows:

  • The ranking as the basis for promotion or relegation now uses only one parameter: market capitalisation. Stock exchange turnover was previously also relevant.
  • However, a minimum turnover is required.
  • A listing in the General Standard of the Frankfurt Stock Exchange is sufficient, while previously shares also had to be in the Prime Standard.
  • New DAX companies must demonstrate profitability.
  • Only those who submit financial reports belong to the DAX family.
  • Companies must establish an audit committee within their supervisory board.
  • The DAX is being expanded to 40 members, the MDAX reduced to 50.
  • Its composition is now reviewed every six months and no longer just in September.